Polygen Launchpad
  • πŸ’œAbout Polygen
  • 🟒Getting Started
    • Connecting MetaMask wallet
      • How to add Polygon (MATIC) Network to MetaMask?
    • How to KYC
  • πŸ’ΈFundraising on Polygen
    • Polygen’s Raise Types
      • Step-by-Step Guide to FLO by Polygen
        • Redeem your tokens
      • What if a raise fails, do I get a refund?
      • Step-by-Step Guide Polygen Fixed Price Raise
  • πŸ’°Polygen SuperStaking
  • 🧠Polygen's raiseToken 101
    • πŸ“ˆraiseToken
      • FAQs about the raiseToken
  • ✨Polygen Tiers
    • Polygen Tiers T&C's
  • πŸ‘¨β€πŸ‘©β€πŸ‘§β€πŸ‘¦Polygen Ambassador Program
    • How to become a Polygen Ambassador
    • Ambassador Tasks
    • Polygen Ambassador Program T&C's.
  • πŸ“ˆPGEN
    • $PGEN Litepaper
  • πŸ—’οΈMore info
    • Glossary
    • FAQ's
      • Polygen Fixed Raise FAQ
    • Technical Documentation
      • Overview
      • A note on regulatory compliance
      • Polygen Glossary
      • Choice of reserve asset
      • Contract upgrades, admin keys, hacks & exploits
    • Terms of Use
    • Privacy Policy
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  2. Technical Documentation

Choice of reserve asset

None of the code in this system has any control over the reserve asset code.

It is up to the Trust deployer and each participating user to conduct their own risk assessment of the reserve asset.

For example:

  • Stable coins may introduce regulatory risk, e.g. the American STABLE Act or similar may suddenly apply to a reedeemable token.

  • Centralised stable coins could censor the redemption or pool mechanisms by blocking transfers beyond our control.

  • The reserve asset could experience its own exit scams and/or exploits.

  • The reserve asset could somehow be 'wound down' out from underneath users who want to redeem against it It essentially comes down to counterparty risk (e.g. tether) + technical risk (e.g. hacks) + value risk (e.g. worthless/volatile reserve).

  • Rough analysis of notable assets: WETH: Zero counterparty risk, low technical risk, high value risk USDC/DAI: Some counterparty risk, some technical risk, low value risk NFT/partner token: Some counterparty risk, some technical risk, very high value risk.

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Last updated 3 years ago

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